MFA Financial Technical Analysis (NYSE:MFA)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the MFA Financial stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the MFA stock chart which creates a trading signal.
See MFA Financial bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis essentially tries to study the supply and demand for a particular security and determine the stock trends for that security. Chartists use stock price movements for this form of MFA Financial stock analysis.
MFA Financial Moving Average
Moving averages help predict the price direction of MFA stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $7.75 is below the price of $7.76.
MFA Financial Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the MFA stock. Currently the stock price of $7.76 is in the upper range of MFA Financial bollinger bands.
MFA Financial Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The MFA Financial MACD line is below the signal line.
MFA Financial Relative Strength Index
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. If the RSI of MFA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.